Jordan Kimmel: It's no longer time to just talk about the market. It's time to dig deeper and look at individual stock ideas. While everyone is waiting for the market top, I'd rather simply focus on the very top Magnet® ideas and also share some of the lowest-ranked Magnet stocks -- which are great candidates to be sold short right here.

Wally Forbes: Sounds good.

Kimmel: The advance decline line, the number of new lows relative to new highs, the complete apathy of the individual investor towards the market, all tell us the market has probably not peaked yet. But this is also probably not the time to wade in and buy the full market. It's time to get really, really selective. So let me share some of my top ideas and some of my top ideas to sell short.

Forbes: Right on!

Kimmel: One of the great industries -- not only of this year but of the last ten years and maybe the next ten years as well -- is the area of biotechnology. Many of the larger caps are already extended in this sector. Magnet’s top-ranked large-cap biotech idea is a name that not everyone's familiar with but should be, (NASDAQ: REGN). Unlike biotechs of years passed, this is a highly profitable company with accelerating earnings, accelerating margins, and is going through a four-month consolidation period. It's a high-price stock at $188, trades with plenty of liquidity, and is simply the highest-ranked Magnet biotechnology stock. It looks like it's ready to move here.

Another area to share seems to be timely. While people are saying nobody's working and the country doesn't make anything anymore. But somehow, Wally, the roads are still crowded when I drive around. The highest-ranked Magnet stock in this space is On Assignment, Inc. (NYSE: ASGN). They are providers of permanent and temporary IT, healthcare and other technical areas of support staff to over 5,000 clients currently. Super stock trend, great valuation and, on my model, everything continues to show acceleration.

The next idea is another mid-cap stock that not a lot of people are familiar with yet -- which is the way I like them. It’s Manhattan Associates, Inc. (NASDAQ: MANH). This is all about supply chain management and software to enable manufacturers, distributors and retailers to save money on logistics -- moving things around more efficiently. It's a cost saver as well as a company that allows people to do things better, faster, and have a smaller imprint or carbon footprint if you will.

Forbes: These are interesting, Jordan.

Kimmel: These are all companies that are continuing to move higher in price, under demand, and being accumulated by the big money out there -- and they all rank very high on the Magnet buy list. They all are in separate industries, and they're all among the leaders in their respective industries.

Forbes: Very interesting.

Kimmel: Now I'd love to share some of the great shorts here as well.

Forbes: That would be good; to have another side of the picture.

Kimmel: When I short, I do not make the statement that "This company has too high of a valuation." Or "This company can't go any higher because it's already gone so far." Instead, I will wait for a poorly ranked Magnet stock to break support, start hitting a series of lower lows, lower tops, and literally break support. At that stage, we don't think something is broken, we already know it. And that's when it's time to start going short.

One area that I believe has disappointed and will continue to disappoint is the gold producers. So while a lot of people got caught up in the end of a ten-year run in gold, not only do we see the metal losing its relative strength, but on my model right now, showing up as a short is , Inc. (NASDAQ: RGLD). While it peaked at $100 back in October, it's still a $70 stock with lower tops, lower bottoms, and currently showing another leg down ready to take place. Revenues have stopped increasing, margins are declining, and we patiently waited for the trend to go negative prior to going short.

And let me add here that a lot of money is lost shorting stocks on the way up trying to predict the top. It's often better to simply wait for the top -- to see relative strength starting to dissipate. With the market already having a multiyear run, stocks that look weak at this time probably present great opportunity on the short side, so let me share another.

The next one is a company called Live Person, Inc. (NASDAQ: LPSN). This is a company offering online engagement solutions via chat, voice and content delivery. The stock looks like it has already peaked. Still trades over 40 times earnings. It is already trending lower and since last August almost all of the high volume days have been to the downside.

Forbes: Very interesting group of stocks that you've come with, Jordan, on both the buy and sell sides.

Kimmel: So while everyone is intent on trying to figure out at this stage what actually will happen next, we have to remember that most economists usually get it wrong. And most investors often act with way too much emotion. Magnet® is a completely unbiased, diagnostic model which simply looks for both the highest probability stocks to go up that are buys and for the highest probability stocks to go down that are shorts.

And to be really, really successful in this business I believe you have to have a way to control your emotions and realize that nobody knows the future and that you want to put the odds as far in your favor as possible and then remember not to argue with the market if things go unexpectedly.

Forbes: All sounds right on, Jordan. It's good to hear once in a while who's willing to say what they don't like as well as what they do like.